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Arkansas Business Insurance

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Business insurance in Arkansas

Nearly a quarter-million small businesses call the Razorback State home, and they employ about 48% of Arkansas workers.1

All of these small companies and self-employed individuals need some combination of business insurance to help protect against events like:

  • Claims of injuring someone who doesn’t work for you or damaging their property
  • Accident damages in business-owned vehicles
  • Employees who suffer work-related injuries
  • Accusations of professional negligence that cause a client financial losses

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Arkansas or start a free instant quote to review options for your business.

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How Next can help you with business insurance in Arkansas  

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

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Business insurance coverage and requirements in Arkansas

If you’re shopping for small business insurance in Arkansas, you might need a combination of these policies:

  • General liability insurance, to help cover claims if someone says that your business caused injury or property damage. This form of insurance includes attorney fees, court costs and settlements if you are named in a lawsuit.
  • Commercial auto insurance, which helps pay for damages from accidents in business-owned vehicles.
  • Workers’ compensation insurance, which helps employees who get hurt at work cover medical bills and recover a portion of lost wages.
  • Professional liability insurance, to help cover damages from claims of work mistakes that causes someone else monetary losses.

 

General Liability insurance

General liability insurance is a type of coverage that most small businesses in Arkansas need and is often required as a condition of signing a commercial lease. 

General liability insurance helps pay to resolve claims of injuring a person not employed at your company or damaging property. If someone sues your company, general liability business insurance in Arkansas also assists with legal defense costs and related damages.

For example, a homeowner says that an appliance technician in Little Rock incorrectly installed a washing machine, causing water damage to a hardwood floor. General liability insurance helps the business owner reimburse the client for the costs of repairs.

Business insurance in Arkansas might include a general liability upgrade known as tools and equipment coverage, a policy specific to construction and cleaning businesses. This add-on helps pay for the costs of business items that are damaged, lost or stolen.

 

Commercial Auto insurance

Arkansas law requires drivers to carry at least $50,000 in auto insurance to help cover medical costs if someone is injured in an accident.2

If your company owns vehicles, don’t expect personal auto insurance to pay for damages from business-related accidents. Adding commercial auto coverage to a business insurance package in Arkansas helps protect you against accidents that happen at work. You might consider carrying more than the state’s minimum coverage, especially if you own multiple company-titled vehicles and employees often drive them while on the clock.

Commercial auto insurance would help a small business protect its bottom line in the following scenario:

An employee of a Hot Springs-based drywall firm injures himself and another driver in an accident on Interstate 35. The business owner’s commercial auto coverage helps cover both parties’ medical bills and vehicle damages, up to the policy’s limits.

Companies that occasionally request employees to drive their personal automobiles for work or rent them should strongly consider a hired and non-owned auto insurance add-on to help pay for accident damages in vehicles not titled to the company.

 

Workers’ Compensation insurance

In Arkansas, small business insurance requirements include workers’ compensation coverage if you employ three or more people.3

Workers’ compensation insurance helps employees who get hurt on the job pay for medical expenses, including prescription medications, surgery and physical therapy. In Arkansas, this form of business insurance also helps cover a portion of an injured worker’s wages if they need more than a week to recover.4

For example, an employee at a Bentonville-based landscaping firm trips at a job site and needs to visit the emergency room. Workers’ comp coverage helps pay for the injured employee’s medical bills so that they don’t have to pay expenses entirely out of pocket.

 

Professional Liability insurance

Small businesses that are accused of poor work, incomplete projects or missed deadlines might need to pay to fix the mistake. Even if your company isn’t at fault, someone could still file a lawsuit for professional negligence that could burden your finances.

Professional liability insurance, which is also called errors and omissions (E&O) coverage, helps in these kinds of situations. Small businesses that face claims of professional negligence can use E&O coverage to help pay for someone else’s financial losses, including lawyer costs, court fees and settlements if you are found responsible for damages in a lawsuit.

For instance, a commercial real estate developer in Fayetteville claims that employees of an electrical firm wired a building wrong, which causes a month-long delay in renting the space to tenants. The electrician’s professional liability insurance helps cover the developer’s lost revenue and pays to fix the error.

 

How much does business insurance in Arkansas cost?

Small business owners in Arkansas spend a median of about $46 per month according to recent Next customer data.

Your costs will vary based on factors like:

The number of risks your business regularly encounters. Small business insurance in Arkansas costs more for companies in riskier industries.

For example, construction companies based in the state pay a median of $60 each month for coverage due to the industry’s substantial risk of injury and property damage. Small cleaning businesses don’t have the same level of risk and spend around $40 for monthly insurance fees.

Coverage types and limits. You’ll save some money each month by purchasing only the minimum required insurance, but if there’s an accident, your business will likely pay more out of pocket for damages.

The number of people your company employs. Your company’s employee count helps determine workers’ compensation coverage costs. When requesting a quote, it’s best to have accurate employee numbers on hand, including positions for which you plan to hire.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

 

More resources for Arkansas small businesses and self-employed workers

Sources: 

  1. U.S. Small Business Administration 
  2. Arkansas Insurance Department 
  3. Arkansas Workers’ Compensation Commission 
  4. Arkansas Workers’ Compensation Commission